Cimpor net profit seen down

The net profit of Portuguese cement producer Cimpor is seen to have decreased by 8.3% YoY to EUR64.95m between July and September 2010, Santander estimates showed.

The decline is explained with higher financial costs, which were very low in the same period a year ago, the bank said in a research note.

Cimpor’s revenue is calculated to have increased by 4.8% on the year to EUR 578.6m in the third quarter of 2010.

Compared to the second quarter, the net profit grew by 22.3% while the turnover fell by 4.9%.

The currency fluctuations are seen to continue impacting the sales on the non-Iberian markets, analyst Luis Colaço forecast. The sales in Brazil, which is Cimpor’s main market, in the third quarter of 2010 are projected to have expanded by 40.1% year-on-year, of which 17.9% due to currency effects.
Published under Cement News